Bitcoin Cash Price Analysis – BCH/USD Facing Tough Challenge

Bitcoin Cash Price Analysis – BCH/USD Facing Tough Challenge

Key Points

Bitcoin cash price declined further and tested the $410-405 support zone against the US Dollar.

There are two bearish trend lines forming with resistance near $420 on the hourly chart of BCH/USD (data feed from Kraken).

The price has to clear the $420-424 resistance zone to start an upside move in the near term.

Bitcoin cash price is struggling to gain bids against the US Dollar. BCH/USD is now eyeing an upside break above $420 to gain momentum.

Bitcoin Cash Price Upside Hurdle

Yesterday, we saw a major hurdle for Bitcoin cash price near $425 against the US Dollar. The price failed to break the stated $425 resistance area and declined. A low was formed below the $410 support as the price traded towards the $405 level. The downside was limited as the price started a correction after trading as low as $405.5. It broke the 23.6% Fib retracement level of the last decline from the $454 high to $405 low.

However, any further gains above $420-425 won’t be easy. There are two bearish trend lines forming with resistance near $420 on the hourly chart of BCH/USD. These trend lines near $420-425 might continue to stop upsides. The 38.2% Fib retracement level of the last decline from the $454 high to $405 low is also at $423 to act as a resistance. The most important resistance on the upside remains at $430-431. It is now close to the 50% Fib retracement level of the last decline from the $454 high to $405 low.

As long as the price is below $430, it might continue to range trade with a minor bearish bias.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is struggling to remain in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now just above the 50 level.

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